Nidhi Company

Get a company of money, for money.

Incorporate an NBFC as per RBI rules. Get it right, the first time. Register a Nidhi company.

A financial company.

  • It is a company classified as an NBFC (a Non-banking financing company) and registered under Section 406 of Companies Act, 2013.
  • facilitate lending money between the core members of the company.
  • This way members (or shareholders) are encouraged to save money and invest them within the company.
  • These deposits are then used by the company for its members (or shareholders), to provide loans or advances, and to acquire government-issued stocks/bonds/debentures/securities.
  • regulated by the Ministry of Corporate Affairs, while the RBI monitors all its financial dealings.

LawDocs helps you to enter into the formal economy.


Financial benefits with financial services

  • Cheaper To Borrow:

As a member, one can borrow money at a minimum rate, relative to the rate at which banks lend money. This can be a major advantage in times of need, as different individuals in the mutual benefit society are likely to need funds at different points in time.

  • Encourages Savings:

It encourages all its members to save money and encourages a thrifty lifestyle. A Nidhi Company, after all, is a mutual benefit society wherein members can lend or borrow money and accept financial aid amongst them.

  • Fewer Complications:

Borrowing and lending to known persons, where the procedure is fixed, is much less complicated than dealing with banks or in an informal setting. A Nidhi Company enables its members to unlock the potential of their money and gain from lower interest rates when they require money themselves.


A few simple steps for a great future.

  • Applying for DIN and DSC
  • Name Approval
  • MoA & AoA
  • Certificate of Incorporation (CIN)
  • PAN, TAN and Bank Account

Documents required

Simply, your documents

To Be Submitted By All Directors

  • A Self-attested copy of PAN Card
  • Self-attested copy of Driver’s License/ Voter ID/ Aadhaar Card/Passport
  • Self-attested copy of Bank Statement/ Telephone Bill/Mobile Bill/ Electricity Bill
  • Passport-size Photograph
  • Specimen Signature Certificate

How LawDocs can help?

For a legally strong finance company.

  • We assist you and discuss with you the project.
  • Guide to formulate best business plan.
  • We procure necessary registrations and licenses for you.
  • We provide advisory help you in a very professional manner.

Prices start with 6499/- (inclusive all)


A Nidhi Company carries on the business of accepting deposits and lending the same on demand. Nidhi Company is like to NBFC but the only basic difference is that Nidhi Companies accept deposits only from its members. The main intend of these companies is to work for the mutual benefit of its members.  These companies are not allowed to carry on the business of Hire Purchase Financing, Insurance, Chit Funds, and Acquisition of securities or Issue of any Debt Instruments.

A minimum of three branches of Nidhi company can be opened in a particular district. In case you want to expand outside the district or want to open more than three branches, the Registrar of Companies (RoC) need to intimated 30 days prior to their opening.

This conditions is laid down by the Act says that a Nidhi Company should acquire a minimum of 200 members within its first year of incorporation. However, in case the company is not able to meet the required number of member, it can apply for an extension with the necessary government authorities.

No, members are only allowed to deposit, borrow, or lend funds.

Any person can become a representative of a Nidhi Company and deposit, lend or borrow money through the provisions provided by the Companies Act, 2013. Hence, they all can become members of a Nidhi Company, provided that they are not a corporation or a company.

    • Cannot conduct other businesses:

    A Nidhi Company cannot carry other business like, chit fund, hire purchase finance, leasing finance, insurance or acquisition of securities issued by anybody corporate on the other hand an NBFC are engaged in the business of loans and advances, acquisition of shares, stocks, bonds, debentures or securities issued by Government or local authority or other marketable securities.

    • Current Accounts:

    Nidhi Company is a mutual benefit institution, so the government is against the commercialization of such companies and hence the users do not have the option of opening a current account under the Nidhi Scheme.

    • No Advertisements:

    Nidhi Companies are not allowed to advertise anything in the hope of gaining a deposit. But, they are allowed to advertise their capacity to grant loans.

    • Preference Share Capital or Debentures:

    A Nidhi Company is not allowed to use preference share capital or debentures to raise funds.

    • Brokerage:

    Such companies are not allowed to provide any brokerage for mobilising deposits or granting loans.

    • Deposits from Non-members:

    A Nidhi Company does not have the right to accept deposits from individuals who are not the members of the Company. Lending and depositing are features that are available only to members.

    • Service Charge:

    The Company does not have any right to charge a service charge to any member for acquiring membership to the Company.

    • Membership Restrictions:

    A Nidhi Company cannot add a corporate body as its member.

    • Boundaries:

    A Nidhi Company is not allowed to open a branch outside its state of origin in India.

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